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C2, Ownership and other Contributing funds
<br />Tekstar Communications, Inc. d/b/a Arvig will own, support, maintain and operate the proposed network. Funding sources to be
<br />contributed from other entities is not anticipated at this time, however, the Company understands and acknowledges that
<br />Sherburne, as part of their RFP process, shall be engaging Cities and Townships so that they may consider participation by
<br />granting additional ARPA contributions and that such a contribution is critical for the purposes of consideration for eligibility. As
<br />such, our executive account team has reached out to the Townships identified as part of this project and has received positive
<br />response / interest relating to support.
<br />No partnerships or joint build efforts are anticipated to be part of the proposed project at this time and start to finish
<br />implementation including field engineering, permitting, construction, and subscriber connectivity are all scheduled to occur
<br />using Company affiliates.
<br />C3. Applicants Ability to Complete
<br />In 1950, Royal B. Arvig bought the Perham Telephone Company, located in Perham, Minnesota. In subsequent years, Perham
<br />Telephone Company purchased the lines from the farmers and started to replace the existing lines and phones with more
<br />modern technology. The Company continued to purchase local exchanges in the immediate area over the following years. Arvig
<br />Enterprises, Inc. was organized in 1984 to facilitate diversification beyond what is allowed by various regulatory bodies. This
<br />corporate structure provides operating efficiencies in managing the Company's various business entities and lends to the
<br />technical feasibility, experience, deliverability, and organizational capacity of the applicant to commit and implement the
<br />proposed project with the schedule specified and proposed timeframe for buildout.
<br />Today, Arvig provides entertainment and communication services to residential and business customers throughout Minnesota,
<br />North Dakota, South Dakota, Nebraska, and Iowa with Company wholly owned (except where noted) subsidiaries as follows:
<br />Holding Companies: Martinsen Communications, Inc.; Midwest Information Systems, Inc.; diversiCom, Inc.; Alliance
<br />Telecommunications Corporation; V3 Technologies, LLC; Perham Investors, LLC; Osakis Telephone Company; The Home Telephone
<br />Company; and The Peoples Telephone Co. of Bigfork
<br />Regulated Incumbent Local Exchange Carriers ("ILECs"): East Otter Tail Telephone Company; Twin Valley-Ulen Telephone Company;
<br />Callaway Telephone Company, Inc.; Midwest Telephone Company; Redwood County Telephone Company; Melrose Telephone
<br />Company; Clements Telephone Company; Felton Telephone Company; Eagle Valley Telephone Company; Loretel Systems, Inc.; and
<br />Arrowhead Communications Corporation•, Osakis Telephone Company; The Home Telephone Company; and The Peoples Telephone
<br />Co. of Bigfork
<br />Competitive Local Exchange Carriers ("CLECs"): Tekstar Communications, Inc.; Southern Cablevision, Inc.; Mainstreet
<br />Communications, LLC
<br />Long Distance: Redwood County Long Distance Company and Royale Comtronics, Inc.
<br />Affiliate Companies: All State Communications, Inc.; AEI Construction, Inc.; AEIS Construction, Inc., CD Communications, Inc.; Time
<br />Communications, Inc.;
<br />Partially Owned: Central Minnesota Network Systems, LLC
<br />Arvig provides corporate services to all subsidiaries including management, accounting, billing, HR, marketing, executive
<br />leadership, employees, purchasing, data processing, IT support, customer services and plant maintenance services. AEI
<br />Construction, Inc., an affiliate company, provides fiber optic network and utilities construction services positively affecting turn-
<br />key implementation for this proposal and other projects. Arvig also provides all cash management services and the credit facility
<br />is maintained at the corporate level. All borrowing and spending decisions are made by the Arvig leadership team and Board of
<br />Directors.
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